Employment, Social Affairs & Inclusion

Low-wage trap

Indicator name Low-wage trap
Code C-9c
Detailed definition The percentage of gross earnings which is taxed away through the combined effects of income taxes, social security contributions and any withdrawal of benefits when gross earnings increase from 33% to 67% of average wage. Breakdowns by household type (single person without children, one-earner couple with two children). (Source: EC-OECD tax-benefit model)
Source Source: EC-OECD tax-benefit model
SPC portfolio section Overarching - context

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